The committee amended the bill before approving it, raising the fee amount and the number of loans allowed.

But payday loan industry representatives who spoke at a public hearing today said they still oppose the amended version, saying it would not allow them to remain profitable and would drive more consumers to use unregulated Internet lenders. They said the changes could put them out of business and eliminate jobs.

Proponents of the bill said payday loans hurt consumers and that the bill would be a good step toward tightening regulations on the business. They say the fees currently allowed equate to an annual percentage rate of more than 400 percent on a two-week loan.

Sen. Del Marsh, R-Anniston, the bill’s sponsor, said he supported businesses but said lawmakers also had an obligation to protect consumers.

Marsh’s bill would:

-- Lower the allowed fee from $17.50 per $100 borrowed to $15. Before the amendment, the bill would have lowered the fee to $12.50.

-- Provide that no payday lender could offer and no consumer could receive a loan that would cause the borrower to have more than eight payday loans in a 12-month period. Before the amendment, the limit was six loans per year.

-- Set up a database that lenders would check to see whether a customer had any outstanding payday loans and whether the customer was in an extended repayment plan. A fee of 25 cents per transaction would be used to pay for operating the data base. Before the amendment, the fee was $1 per transaction.

The bill now moves to the Senate. It would also have to pass the House.

Marsh said creation of the data base was the most important component of the bill.

At the public hearing, four people spoke in favor of the bill, and four people spoke against it.

John Harrison, superintendent of the State Banking Department, was one of the four proponents. He said the differences of opinion were an indication that the bill was striking a good balance.